Lightspeed POS Inc. (TSX:LSPD)(NYSE:LSPD) stock is a high-flying stock. Similarly, Ballard Power Systems Inc. (TSX:BLDP)(NASDAQ:BLDP) is also a high-flying stock. There is certainly room for at least one of these growth stocks in our TSFA. The question is, which one is the better buy?
We’re all gearing up for 2021. The stock market is anticipating a recovery. Investors are thinking ahead to the vaccine. And consumers are excitedly awaiting a return to some kind of normalcy.
We all have a decision to make. The 2021 TFSA contribution limit is $6,000. Adding that to the total gives us a cumulative limit of $75,500. That’s a significant sum of money. So maybe you’re playing catch up with your TFSA contributions. Or maybe you just have to decide what to do with the added $6,000.
Either way, you have some decisions to make. We should all have a high growth portion of our TFSA. Lightspeed POS stock’s news has been positive. Ballard stock’s as well. Let’s decide if Lightspeed POS stock or Ballard Power stock is the better buy.
Lightspeed POS stock
Lightspeed POS stock price trades at extremely lofty multiples. And its status as a high-growth momentum stock is clear. Investors who have owned the stock are happy. But what does the future hold? Let’s take a look.
My guess is that Lightspeed POS stock still has strong growth ahead. The economy is racing toward a transformation. E-commerce will make up an increasingly bigger share of the economy going forward. The pandemic will come to an end. And the e-commerce boom will remain. Lightspeed POS stock news will be positive.
So Lightspeed POS stock has doubled in 2020. Revenues have soared. And Lightspeed is taking its place in the world of e-commerce. The first movers here will have clear advantages. ResearchMarkets.com estimates that the e-commerce market’s growth will be below 10% in the next five years.
Tax-free in your TFSA
Ballard Power stock is another high growth, high potential stock. But this company has yet to see the significant revenue growth that Lightspeed has.
Like Lightspeed POS stock, Ballard Power stock is trading at expensive multiples. Ballard’s stock price appreciation is a reflection of its strong growth potential. In fact, Ballard stock has soared 140%. It’s gaining the respect of investors for many reasons.
For example, Ballard’s fuel cell has a proven and reliable performance. Also, China, Europe, and California are pushing hard for fuel cell-powered vehicles. And Ballard is transacting globally in all these areas. It seems all but a matter of time before this takes off big.
The build-out of the fuel cell industry is just a much bigger task than the e-commerce industry. But Ballard has decades behind it. And the company has partnerships, contracts, and deals around the world. It is a world that is increasingly looking to the fuel cell. This seems to be a very appealing solution to the climate crisis. Clean energy for trucks, buses, trains, and even airplanes. Without sacrificing performance. And without the long refueling times and limitations.
ResearchandMarkets.com estimates that the global fuel cell industry will experience massive growth in the next five years. The estimate stands at an average annual rate of 26%. Ballard is at the forefront of the fuel cell market. For example, the company has the expertise. It also has unrivalled relationships.
Comparing Lightspeed POs stock and Ballard Power stock, things are pretty clear to me. I think Ballard Power stock is the better buy for your TFSA. The fuel cell market has much bigger potential. It also has stronger barriers to entry. And Ballard
The bottom line
Lightspeed POS stock and Ballard Power stock are both high-growth, high-impact stocks. They both trade at similar multiples. However, Ballard Power has more upside. I mean, the fuel cell industry is a bigger, higher growth one. And things are just beginning to fall into place.
Ballard’s revenue will accelerate big time in the next few years. And Ballard Power stock will follow.
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.